FX.co ★ GBP/USD intraday technical analysis and trading recommendations for January 28, 2013

The GBP/USD pair started the new year with a sharp bullish move above 1.6300. As we see on the daily chart, the last push has ended up expressing significant bearish price action indicating a false break above 1.6300 establishing a significant resistance zone.

It is important to note that the pair has already broken down a long-term uptrend line that came to meet the pair around 1.6000.
The pair was trapped within narrow range 1.5800 - 1.5890 after finding temporary support at psychological level 1.5800. However, bearish breakout took place last week opening the way towards projection target around 1.5725 which has been hit today.
The pair remains under heavy SELLING pressure, as recovery attempt from Friday’s lows at 1.5745 zone, failed to push the pair above 1.5800 level. This week started with manifest weakness, although weekly closure came slightly above 1.5800; weekly gap added further bearish domination focusing initially on 1.5700 target.

Brief consolidation at 1.5700 is expected, as indicators are entering oversold state.